Indianapolis Irrevocable Trust Attorney
An irrevocable trust is an effective way to avoid over-taxation of assets. These trusts cannot be amended, modified, altered, or revoked after your death or lack of capacity to make financial decisions on your behalf. The reasons for creating such an ironclad trust are related to the advantages they provide. At Trapp Law, LLC, we provide advanced estate planning strategies, which may include the establishment of an irrevocable trust, pour over trusts for your minor children, and other strategies for preserving your wealth as you age.
Why an Irrevocable Trust?
Many people who practice certain professions are at risk of becoming a target of lawsuits. Once your property is transferred into an irrevocable trust, it is untouchable by creditors or those who are seeking a judgment against you in civil court. To preserve your assets for the people you love may be best achieved by the establishment of this form of trust.
Irrevocable Trusts and Taxation
The property you choose to transfer into an irrevocable trust does not add value to your personal estate. The IRS cannot collect estate taxes for the property held in the trust, as you no longer own the property – it is owned by the trust.
For our clients who have large estates, this strategy may be employed to preserve more of your assets to pass onto your beneficiaries. Among other benefits, the assets in an irrevocable trust will not restrict you from seeking government benefits. For families who have a special needs child or relative who requires special care, the financial assets are protected so a disabled person can qualify for critical benefits provided by the government.
Trapp Law, LLC: Advanced Estate Planning
At Trapp Law, LLC, our estate lawyers are experienced in creating comprehensive estate plans individuals and couples of high net worth. In many cases, establishing an irrevocable trust will be one aspect of an estate plan. To determine what legal strategies will be most effective for you and those you care about, we urge you to meet with us for an initial consultation about estate planning and trusts.
Types of Irrevocable Trusts
There are two types of irrevocable trusts, including:
These trusts are established in various ways to protect a range of assets, often holding property such as the family home. Other living trusts include life insurance trusts, annuity trusts, spousal trusts, charitable trusts, and some others. To determine the most effective estate plan for your individual case requires a full evaluation of your assets, what you hope to achieve in estate planning, and crafting a custom plan to achieve those goals.
Your loved ones will appreciate the time and effort you put into keeping your affairs in order – those who suddenly pass away without estate planning can leave their loved ones in a desperate financial situation, facing heavy taxation and having no access to funds. A living trust gives them the ability to move forward after your death without the added stress of probate and taxation problems.
These trusts are only created, and then funded, upon the death of the person who establishes it. They are based upon the terms outlined in a will. As this trust is only irrevocable once established, which occurs at the time of death, they are more flexible and can be altered over time if you make changes to your will or can be revoked during your lifetime.
What is Right for You? A Custom-Crafted Estate Plan from Trapp Law, LLC
To create the most effective estate plan, it is imperative that we understand your goals, what you hope to achieve with respect to passing on your assets, and any concerns about your beneficiaries and their individual needs. We work closely with our clients, so we fully understand their wishes, and create an estate plan that offers the most effective methods to protect assets from heavy taxation or other risks. For many, this may include the establishment of an irrevocable trust as part of a comprehensive, custom estate plan.